The US internet giant Google has acquired a stake in East African e-logistics company Lori Systems for an undisclosed sum.
Headquartered in Nairobi, Kenya and founded in 2017, Lori Sytems helps digitize shipping and provides shippers with solutions to manage their cargo and transporters electronically.
“This new investment is the third from Google’s US$50 million Africa Investment Fund, which CEO Sundar Pichai announced in October 2021,” the company said in a statement on Wednesday. The size of the shares was also not disclosed.
“It follows the launch of Google’s first product development center on the continent in Nairobi, the city where Lori Systems was first launched.”
Citing a Knight Frank report, Google said that on average 75% of the cost of a product sold in Africa is accounted for by logistics costs, compared to just 6% in the US.
“Logistics operators on the continent face a host of challenges, from fragmented supply and demand markets to conflicting pricing, paper-based documentation and practical access to finance. Lori Systems lowers the cost of goods by eliminating pain points along the freight journey – seamlessly connecting shippers to transportation, providing shippers with solutions to efficiently manage their cargo and carriers, and digitizing their entire transportation operations from sourcing to documentation and payments.”
Lori System co-founder and chief product officer Jean-Claude Hamavu said the African Continental Free Trade Area agreement is expected to significantly increase intra-African trade in the coming years, providing “an untapped trade opportunity of US$21.9 billion”. a potential that the 54 ratifying countries hope to use over the next five years. Logistics is the key to unlocking this opportunity.” — © 2022 NewsCentral Media